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The Proof Needed to Recover Attorney's Fees: A New Frontier


City of Laredo v.  Montano - Texas Supreme Court

Facts:  The relevant portion of this case dealing with attorney's fees centered around an attorney who sought to prove up his attorney's fees at trial almost exclusively based upon his testimony.  At trial, the attorney testified that he had worked for approximately 226 weeks on the case, with a “conservative” estimate of 6 hours per week.  Based on his estimates, he calculated his attorney's fees in the amount of $339,000.  Although the attorney testified at trial as to the work he had done, he did not keep time records nor did he have any invoices, bills, or other tangible evidence to establish the attorney's fees he sought.  The only tangible evidence he could point to were the "thousands and thousands of pages that were accumulated in this case."  

The City of Laredo argued that there was insufficient evidence presented by the attorney to prove up the attorney's fees he sought and emphasized the fact that the attorney had failed to produce time records, billing statements, or even a client agreement.  However, the jury awarded the attorney $339,000 in attorney's fees and the court of appeals upheld the ruling on the grounds that the testimony given by the attorney was sufficient to prove up the attorney's fees he sought.  

Holding:  The Texas Supreme Court expanded upon El Apple, a prior case ruled upon by the Court, in regard to how an attorney should prove up attorney's fees in lodestar cases.  In the present case, the Court clarified that while time records are not always required, at least some documentation is required to support the calculation of attorney's fees.  Merely pointing to the amount of paper produced throughout the course of litigation is not sufficient, by itself, to justify an award of attorney's fees, in light of El Apple. 

While it appears that on its face that the court's ruling applies only to the lodestar method of calculating attorney's fees, it likely would not hurt a practicing attorney in Texas to use this case as a guide when seeking attorney's fees in any case.  An attorney who is able to provide time records, billing statements, or client agreements, in addition to oral testimony, will be able to build a stronger record and better protect an award of attorney's fees from attack on appeal, in light of the new standard established by the Court.  

Judgment:  The Texas Supreme Court reversed and remanded, regarding the portion of the case dealing with the attorney's fees award.  

Majority Opinion Judge:  Per Curiam

Date:  October 25, 2013

Opinion:  http://www.supreme.courts.state.tx.us/historical/2013/oct/120274.pdf

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